Damage and Loss Claims Appraisals

Be based on a physical inspection of the remains, if possible.

Utilize interviews of the insured, old documentation, old photos if extant.

Attempt to describe the property involved in the loss in the most complete terms possible.

Factor in the condition of the property prior to the loss.

Consider all reasonable expected costs if the policy denotes "replacement cost" coverage.

Keep in mind the marketplace where the insured would have to replace the property.

Support conclusions with evidence based on market research and accepted principles of valuation.

"Appraisal mills" issuing valuations of dubious quality are a real concern in many localities.

Some old appraisals still in circulation were invoiced as a percentage of the value conclusion. This is now considered unethical as it affects the independence of the end value.

Appraisals issued by the vendor of the lost item should be treated with caution; they cannot be regarded as truly "independent" appraisals.

Many appraisals in circulation do not comply with professional valuation standards.

Certain "international" commercial galleries have reputations for issuing appraisals that are many times the actual value.

Few older appraisals provide evidence of value — even for items of high value.

Many galleries that issued appraisals have gone out of business and will not be traceable.

Loss-of-value is the difference in the monetary worth of an art or antique object before damage and after the damage has been repaired.

Loss-of-value cannot be estimated until after the damaged object has been restored.

If the item has not been repaired, the appraiser can provide an estimate of salvage value.

With older items, pre-existing damage is common and should be noted in the insurance claim appraisal report.

The relationship between "old" damage and "new" damage must be considered in a report.

In order to estimate loss-of-value, the appraiser also must estimate replacement value (or actual cash value) prior to the date of loss.

If coverage is based upon an "agreed value", a replacement value estimate will not be required.

A hypothetical report is dependent on the quality of the information provided to the appraiser.

You should not expect an exhaustive report when lower value items are involved.

You should expect a more detailed report when high value items are involved.

Some people have an exaggerated concept of the value of their art or antique property.

If the property is recoverable, a loss-of-value report cannot be issued until after the item or items have been restored.

Insurance claim reports take longer to complete than coverage reports due to the absence of much key data.

Loss-of-value reports are more complicated than ordinary insurance claim reports; they should be reserved for items of higher value.

Know exactly what type of coverage applies to the lost or damaged property; the appraiser will need to know this in order to use the appropriate value type in a report.

Collect as much documentation from the insured as possible.

Prepare a list of the lost items, or forward the statement of claim.

Indicate to the insured that the appraiser will want to conduct an interview and an inspection of the remains.

Ask the insured to think about how the lost or damaged object can best be described. Size, shape, material, colors, age, authorship, and condition are all important details.

We will be pleased to discuss your appraisal needs in complete confidence.

We charge competitive rates and have a rapid turn around time.

If items are lost, stolen or severely damaged, it is not always necessary to conduct a personal inspection. We deal with many long-distance clients in this manner.

Indicate to the insured that the appraiser will want to conduct an interview and an inspection of the remains.

We produce and issue an informative tip sheet for insurance companies and adjusters. To be placed on our mailing list, contact us at our e-mail address. Please include the name of your firm or business.